AUDJPY approaching major resistance, prepare to sell
Sell below 88.26. Stop loss at 88.68. Take profit at 87.27.
Reason for the trading strategy (technically):
Price is approaching major resistance at 88.26 (Fibonacci extension, Elliott wave theory) and we expect to see a reaction off this level for a drop to at least 87.27 support (Fibonacci retracement, horizontal pullback support).
Stochastic (34,5,3) has been testing out 98% resistance for quite some time and we expect a drop on it soon.
Correlation analysis: AUD weakness is expected today with AUDUSD similarly testing major resistance and expecting a drop.
Reason for the trading strategy (technically):
Price is approaching major resistance at 88.26 (Fibonacci extension, Elliott wave theory) and we expect to see a reaction off this level for a drop to at least 87.27 support (Fibonacci retracement, horizontal pullback support).
Stochastic (34,5,3) has been testing out 98% resistance for quite some time and we expect a drop on it soon.
Correlation analysis: AUD weakness is expected today with AUDUSD similarly testing major resistance and expecting a drop.